Professional Community for Car Dealers, Marketing, Advertising and Sales Leaders
Last week marked the completion of five years of these weekly market updates and almost 2.5 years of monthly specialty market updates. We trust this venue has provided insight for each of your businesses, and that it has brought profitable results. We thank each of you who have called or emailed various comments and questions during this time. So let’s get started on year number six.
The activity within the editors’ analysis and the required value adjustments definitely picked up this past week. We had to make more adjustments on average each day and ultimately for the week, than any other time going back to the week ending June 21, 2013. As similar to the previous week, only 13% of those adjustments this past week were increases to the previously published value. When looking separately at the cars and trucks, only 4% of the car adjustments were increases resulting in the average car segment change to increase week over week to -$77, the second highest weekly decline in the past fifty weeks.
Car And Truck Segments
The overall market change from August 1 to September 1, 2013 had the Entry Level Cars with the highest monthly depreciation of -2.4%. Since the beginning of September and for the past two weeks this segment has had the smallest dollar and percentage declines, this past week at -$8 or -.13%. Not too far behind in stability was the Compact Cars at -$37. This segment has been the most consistent car segment in low change level with a six week average change of -$35. In relation to year ago changes within the cars, the Entry Level Cars also had the lowest weekly decline of -$21, while the average car segment change was higher in decline at -$94.
The trucks had a slightly greater average change this past week than the prior week at -$45. Leading the trucks in lower depreciation for the week were the Compact Pickups at -$12, followed by the Full-size Pickups at -$17. The full-size and mini vans and wagons continue to maintain values at pretty stable levels in relation to the remainder of the truck segments.
The truck segment with the great monthly percentage depreciation for August 1 to September 1, 2013 was the Compact Crossovers at -2.4%. Their change this past week at -$56 or -.46% would have them doing slightly better for the full month of September if this change level continues. A popular segment in the number of players and overall volume, the most recent new sales reports have this segment as the fastest growing in volume. This might also mean a bigger supply of trades within this segment for the replacement new vehicle due to its great functionality and good fuel economy, thus bringing the slightly larger segment average depreciation.